Do you need to sell house quickly on your own in California? Then, this blog is for you. The housing market in California is competitive. Between Q1 2021 and Q1 2022, California home values increased by 20%. However, due to rising mortgage rates, real estate prices in California may fall in 2022 and 2023.
What is FSBO?
The term "for sale by owner" (FSBO) refers to a property sold directly by the owner rather than through the services of a real estate agent or broker. Sellers choose the FSBO route to avoid paying a real estate agent commission, typically 5% to 6% of the sale price.
What are the Benefits of Selling a House as FSBO?
- Reduced realtor commission: Even if your buyer has an agent, you'll save 2-3% on the listing agent commission.
- No competition from other clients: Because some agents take on more clients than they can handle, you may not receive the required attention.
- Total Control: You have more control over the listing price, showing schedule, marketing strategy, negotiation tactics, and other aspects.
- Sell faster: If you're selling to a family member or a friend, FSBO makes the process easier.
What are the Steps to Sell a House in California by Owner?
The steps to follow for the most-asked question about "how to sell a house in California by owner" are as follows:
Prepare your Home for Sale.
Preparing your home for an open house before an agent visit will allow the agent to see the full potential of your home and better market the property-store extra shoes and coats. The presence of these items in the open suggests a lack of closet/storage space. Remove any personal belongings.
Choose the Best Time to Sell
When it comes to selling a home, timing is everything. In California, selling a home at a specific time of year may result in more money in your pocket. If you want to sell your house first, you can do so from April to June.
The houses are on the market for about 28 days, seven days faster than the average number of days in another month. You should note that the number of days on the market does not include the time it takes to close.
Set a Competitive price
Competitive pricing is essential for a successful sale. Examining your area's currently active and recently sold comparable California real estate listings will get you close. You can also refine the price further to determine the exact list price.
Because of limited inventory and competing buyers in a hot sellers' market like California, you can price your home up to 10% higher than the neighborhood prices. Real estate agents conduct a Comparative Market Analysis (CMA) to determine an appropriate listing price.
List your California Home.
Listing your property on the MLS is the quickest way to enter the housing market and market it to all home buyers and iBuyers. If you choose Houzeo, they will syndicate to real estate websites such as Zillow and Realtor.com, giving your property maximum exposure. According to a study, homes listed on the MLS sell faster than those not.
Show your Home
Responding to prospective buyers' requests is the most important task if you want to sell your house quickly. Buyers will be discouraged if you are unresponsive or respond slowly to their inquiries. Similarly, scheduling showings around the buyer's schedule will assist you in selling your home quickly.
Staging your home is a type of marketing strategy. It's essential as it gets your house ready to sell. You can reach out to your network to find a potential buyer. Inform your family and friends that you will be selling your home.
Negotiate the Best Price possible.
Negotiations involve more than just the final sale price. You and the buyer must also agree on contract contingencies, how closing costs are split, the timeline, and other details. You would typically have an agent and a real estate broker.
When you sell FSBO, you are solely responsible for the transaction. You can request Highest & Best Offers for single offers and Counter Offers for multiple offers.
In California, the closing process is handled by either a title company or an escrow company. The legalities are usually handled by your Realtor and settlement agents. However, it would be best if you were prepared for a few things during closing.
The amount of money you will spend on closings when selling a home in California is determined by various factors such as Realtor commissions, fees, taxes, mortgage payoff, etc.
Here are some essential documents you'll most likely need when selling a house in California:
- California Transfer Disclosure Statement (TDS)
- Megan's Law Disclosure
- Agency Disclosure
- Natural Hazard Disclosure Statement
- Military Ordnance
- Carbon Monoxide Detector Disclosure
- Water Conserving Plumbing Fixtures
- Purchase Agreement
- The HUD-1 or Closing Disclosure
- Bill of Sale
- Title Certificate
- The Deed
- Closing Statement
- Home Inspection Report
- Home Warranty Papers
- Title Affidavits
- Loan Payoff
- HOA Forms
- Correction Agreement
The following are the various costs associated with selling your home in California:
- Listing Fees
- Closing expenses
- Cost of the title search
- Home improvement expenses
What are the Things to Remember for Selling FSBO?
- It is critical to remember that when a seller does not use a real estate agent, the seller assumes full responsibility for the transaction.
- If the legal documents for sale are not correctly drawn up or the home has issues that are not adequately disclosed, selling a home through FSBO can pose legal risks. Depending on the seller's experience, avoiding the commission may be a wise financial decision.
Selling a home in California is a complicated process. Choosing FSBO necessitates weighing the benefits of potential savings against the labor of marketing and selling and an honest assessment of the owner's ability to perform these tasks adequately.
It would be best to deal with various processes such as pricing, marketing, paperwork, and negotiations. Flat Fee MLS or FSBO platforms like Houzeo are good options for sellers. Houzeo makes the sellers' jobs much more manageable.